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Title Development of a Generic Sales Strategy on Egyptian Market through Market Analyses, Product Development and Differentiation
Author Ben-Ami, Eran (Copenhagen University College of Engineering, IHK)
Supervisor Schultz Vemming, Knud (Copenhagen University College of Engineering, IHK)
Ikast Drejer, Anitta
Institution Ingeniørhøjskolen i København, IHK, DK-2750 Ballerup, Denmark
Thesis level Bachelor thesis
Education Diplomingeniør, Eksport
Education Bachelor of Engineering
Publication date 2012-12
Abstract This thesis investigates whether FLSmidth, through a thorough market analysis and the development of a Generic Sales Strategy, will be able to regain sales on the Egyptian wear parts market. The market analysis will include an investigation of the wear parts market in Egypt including a competitor analysis and an examination of the customer’s buying behavior. In addition, it will be examined, whether FLSmidth’s establishment of a Local Service Unit can support the strategy, by analyzing the possibilities of combining services and wear parts sales. The wear parts for the clinker cooler will also be subject to an analysis, in order to determine if FLSmidth has a possibility of obtaining a competitive advantage through product development, which will contain an investigation of a possible alloy substitution for the wear parts. The market and product development analysis will create the basis for the decisions regarding the Generic Sales Strategy.
The market analysis confirmed that FLSmidth’s market share for wear parts is decreasing. The competitiveness of the wear parts market has increased severely, with FLSmidth’s former suppliers becoming competitors due FLSmidth’s failed attempt to protect intellectual property. The Critical Success Factor on the Egyptian wear parts market was determined to be price, a parameter FLSmidth has not been able to compete on. However, through the alloy analysis it was determined that by changing to a newly developed alloy, the wear parts could be reduced noticeably in cost. It was decided that the competitive advantage would not be long lasting, since it was easily duplicated, and the Generic Sales Strategy was developed with focus on combining services and wear parts sales. Since the Critical Success Factor for the Egyptian market was price, it was decided to develop a service contract which combined operational savings and spare parts management, known as a Performance Contract. The Performance Contracts will be financed by FLSmidth, and the customers will pay the contract with the savings achieved, which removes the issue of additional spending for the customer. According to the market analysis, the Egyptian customers are focused on price, so it was determined that a product which offered savings without additional spending would appeal to that customer segment.
The thesis concluded that FLSmidth, by replacing the alloy for wear parts and combining services and wear parts sales in a Generic Sales Strategy, will be able to regain market shares on the wear parts market in Egypt.
Pages 100
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Admin Creation date: 2012-12-17    Update date: 2013-10-22    Source: ihk    ID: ihk-12667087    Original MXD